Plans for Inn Collection Group hotel on Redcar seafront in limbo

Newcastle-based the Inn Collection Group was previously on board for the project to add a 42 bedroom hotel and restaurant on the seafront at Coatham.

But scrutiny committee members at Redcar and Cleveland Council were recently told the developer was “exploring alternative options”.

It was reported the company planned to invest about £6m in development of the project, which now appears to be in limbo.

Money from the Tees Valley Combined Authority – £294,000 – has been allocated and spent on remediating the land, off Majuba Road, in order to pave the way for construction of the hotel with the council employing a contractor for the required groundworks.

Councillors at a meeting were told that the site – located between the TunedIn! building and a crazy golf course ‘Frosty Penguin’s Putting Adventure’ which opened in 2023 – had “attracted interest from multiple investors, and potential future options may emerge”.

Meanwhile, a council spokeswoman said: “Discussions are ongoing about the future of the site.”

The fenced off site on Majuba Road which has been earmarked for a new hotel. Picture/credit: Google. Free for use for all LDRS partners.

The Local Democracy Reporting Service has attempted to contact the Inn Collection Group, only to receive no response to date.

The council, which has an ongoing masterplan in place for the regeneration of Coatham, formalised a heads of terms agreement with the hotel chain in 2020 – a subject to contract framework for negotiations – and planning permission for the development was later granted.

But even then doubts had already surfaced with former council leader Sue Jeffrey questioning whether council chiefs had a “plan B” should the hotel developer pull out.

In an update delivered to the council in March 2024, Councillor Lynn Pallister, the cabinet member for growth and enterprise, appeared to confirm everything was still on track, stating that once remediation was finished “the plan is for the Inn Collection Group to begin developing the hotel”.

She added: “Coatham seafront has received a complete makeover this past year, with leisure facilities on the seafront boosting tourism in the area, and we’ll soon be welcoming a big hotel chain to complement this. 

“The Coatham area is close to Redcar’s town centre, train station and the UK’s largest industrial zone Teesworks, so the hotel will be in a great location.”

Councillor Chris Jones, who chairs the growth scrutiny committee at the council, said he had previously asked officers for an update and it would be a “real blow” if nothing was currently on the table in terms of the earmarked development.

In 2022 tourist visitors to Redcar and Cleveland contributed an estimated £216m to the local economy.

But the same year consultation responses from those working in the tourism sector to a destination management strategy published by the council highlighted how there was a “dependence on day visits”.

The borough was also said previously to have only one hotel with more than 50 rooms which would cater in larger numbers for people wishing to stay overnight.

A new hotel in Coatham was originally discussed for the Coatham green side of Majuba Road.

But following the demolition of the old Redcar Bowl venue that land was allocated for a new 5,000 seater arena project.

The ambitious plans bit the dust last year after failing to attract the required investment.